Fools gold sen-fred_r_marvin-190pgs-1936-pol

Madison & Marshall, Inc.
18 EAST 48TH STREET
NEW YORK CITY
PUBLISHER'S NOTICE
The pen name, "The Senator from Alaska," used by Mr . Fred R. Marvin
for the first two editions of FOOLS GOLD resulted in so many requests from
all parts of the country for better identification, that both the real and the
pen name appear with this, the third, edition . The nom de plume, "The
Senator from Alaska," was used by Mr. Marvin more than three decades
ago when he was a mining editor in the Pacific Northwest. His record as a
writer is listed in "Who's Who in America."
As a newspaper reporter, Mr. Marvin covered many conventions of the
People's Party . He investigated the strike activities of the Federation of Miners
in the '9os in Northern Idaho . He personally watched the formation of the
I. W. W. in 1904. This was the organization which fomented the strike in
Colorado in 1913 which developed into an open rebellion against constituted
authority. He made a detailed survey of the Nonpartisan League shortly after
its formation and his successful fight against this organization is well known
in the West because of his writings in the Mountain States Banker, a journal
which he founded and of which he was editor.
As representative of the Boston Transcript, his articles covering the trials
of the communists arrested in the Bridgeman raid in Michigan in I92o
were reprinted in a large number of leading dailies .
In 1923 he came to New York to become editor-in-chief of the New
York Daily Commercial, which position he held for a number of years .
He assisted in the formation of, and later became secretary of, the Ameri-
can Coalition of Patriotic and Fraternal Societies . In recent years he has
continued his research as head of the Committee on American Education
which is closely affiliated with the American Coalition.
He has written several other books and pamphlets which have been well
received throughout the country, and recently he prepared for use of more
than sixty radio stations many fifteen minute addresses .
Only one having Mr. Marvin's background and experience could have so
perfectly assembled the factual material contained in FOOLS GOLD .

rvvLL) ~vLL'
An Expose o f Un-American Activities
and Political Action in the
United States since r86o
BY
"THE SENATOR FROM ALASKA"
FRED R. MARVIN
MADISON & MARSHALL, INC .
18 EAST 48TH STREET, NEW YORK
1936

Copyright, 1936, by
MADISON & MARSHALL, INC.
FIRST PRINTING, APRIL, 1936
SECOND PRINTING, MAY, 1936
THIRD PRINTING, AUGUST, 1936
THIRD EDITION NOTICE
The finer edition of FOOLS GOLD, in handsome cloth
binding, larger and more readable type, with an attractive and
striking jacket, is available to those who wish this book for
permanent use at the original price of two dollars .
MADISON & MARSHALL, InC.
PRINTED I N THE UNITED STATES O F AMERICA

CONTENTS
PREFACE

V
I. THE CASE OUTLINED

I
II. SOCIALIST PLATFORM AND NEW DEAL
LEGISLATION COMPARED

7
III. SOME OF THOSE IN COMMAND AT WASHINGTON

16
IV. THE PHILOSOPHY OF DESTRUCTION

24
V. THE PHILOSOPHY OF DESTRUCTION BECOMES ORGANIZED
IN THE UNITED STATES 31
VI. THE BIRTH OF THE BRAIN TRUST 43
VII. SOCIALISM AND THE NONPARTISAN LEAGUE 55
VIII. THE COMMUNISTS ENTER THE UNITED STATES 68
IX. THIRD PARTY MOVEMENTS IN THE '20S 80
X. "STEALING" PARTY NOMINATIONS

92
XI. NEW DEAL LEGISLATION IS DESTRUCTIVE

104
XII. A FINAL WORD

122
I

APPENDIX
GOVERNMENT

172
It
A " FACTS CONCERNING SOCIALISM THAT SHOULD BE UNDER-
STOOD 127
« a
B THE INTERNATIONALS 133
"C7' THE POPULIST MOVEMENT 137
«
D
a
THE INDUSTRIAL WORKERS OF THE WORLD 146
ttE" SOCIALISM AND COMMUNISM SAME THEORY 152
«
F
"
CITATIONS FROM SOCIALIST SOURCES OF INTEREST IN
STUDY OF THE NEW DEAL 158
"G" CITATIONS IN RE SOCIALISM APPLICABLE TO NEW DEAL 162
It „
H SOCIALISM WOULD DESTROY RELIGION I66
91
I RIGHTS OF THE INDIVIDUAL AND AUTHORITY OF THE

PREFACE
THE glittering particles of worthless mica found in the sands
of the many streams in the West and Alaska deceived innu-
merable untrained prospectors who had gone out, full of hope
and ambition, to locate Nature's hidden stores of real gold .
Posting their location notices and believing that they were
rich beyond even the fondest dreams of avarice, they hastened
to the nearest mining camp there to celebrate their good
fortune in days and nights of riotous spending . When they
had exhausted their available cash and much of the credit
they had gained by telling of their discovery, they retired to
sleep off the debauch. Upon awakening, they were informed
by some old-timer that what they had found was nothing
but worthless fools gold .
The enchanting promises of paternalism under the name of
a New Deal have, like the false gold of the foolish pros-
pectors, deceived many minds . Those who believe they have
found the key to the vault in which is stored the real gold of
"a new social order" that will buy "a more abundant life,"
and "greater security for all," have posted their location
notices upon the door of the federal government and are
celebrating by the riotous spending of public funds . When at
last they have exhausted the taxpayers' ready cash and mort-
gaged all wealth, thus ruining the credit of the nation, they
will retire to sleep off the debauch . Upon awakening, they
will be informed by those who saw the folly of it all, that
what they found was nothing but another kind of worthless
fools gold.
"The Senator from Alaska."

Chapter I
THE CASE OUTLINED
IN November, 1932, because this nation, for two or more
years, had been in something of an economic muddle, there
was a growing demand to "get rid of Hoover." It had not
been difficult to create the impression that, in some manner
not explained, he was personally responsible for the ills of the
people. The vote that placed Franklin Delano Roosevelt in
the White House did not come so much from those truly
anxious to elect him as from those determined to unseat Mr .
Hoover.
Three full years have elapsed since Mr . Roosevelt entered
the White House. His many promises, made on the stump,
have not been kept. The Democratic platform has been tossed
to one side. Experimental legislation, much of which is held
unconstitutional by many, and some of which has already
been nullified by the Supreme Court, clutters the statute
books. There are as many, if not more, persons out of em-
ployment now as there were on March 4, 1933. The debt
which has been created in the past few years is the largest in
the history of the United States .
The growing demand to "get rid of Roosevelt" which was
no more than the feeble moan of the distracted a year ago,
now takes on the proportions of a mighty roar . Unfortu-
nately, we think too much in terms of politics . We seem to
be of the impression that the man in the White House can
work miracles. He cannot. No man, elected in 1936, no
matter how able, can, in four short years, accomplish much,
and he will accomplish little unless he knows and undertakes
to eradicate the germ which now infects the body politic .
A sound, safe, conscientious man wedded to the theory of con-
stitutional government, one who holds even a political prom-
I

2

FOOLS GOLD
ise sacred, himself not affected by this poison, will do a great
deal toward restoring confidence . With confidence restored,
business will be encouraged again to produce ; capital invest-
ments will follow; the demand for workers will steadily in-
crease; and this, in turn, will give these wage-earners the
means to purchase foodstuffs and so benefit the farmers .
If, however, the man who succeeds Franklin D. Roosevelt
-and it matters not what political label he wears-is at all
infected with the dangerous philosophy upon which New
Deal legislation is based ; and if those elected to the Congress
.remain subservient to group pressure, there can and will be
no change for the better .
The thing the American people must get rid of is the germ
of our troubles . That germ is found in the fallacious theory,
alien in its origin, that, by the abolition of the institution
of private property and by the establishment of a form of
government that does not recognize the right of the indi-
vidual to acquire and own property, the people, as a whole,
will enjoy what many term "economic security ."
At one time in this nation we had a large element enjoying
economic security. They were the colored slaves of the South .
They had no worries over economic questions since they had
houses in which to live, food to eat and clothing to wear,
while if sick or disabled they were supplied proper medical
attendance-but they did not have liberty and freedom .
Whether we call that false philosophy socialism, com
munism, paternalism, Fabianism or New Dealism matters
little. A snake is a snake even if the name given to this or
that species is sonorous or unpronounceable . The philosophy
which has the political support of a large element in our
society under various titles, is un-American, unethical, anti-
religious and economically unsound .
It is un-American because by its acceptance we reverse the
system of government outlined by the Constitution . Under the
Constitution the citizen is master and the State the servant .
The false philosophy holds that the State is master and the

THE CASE OUTLINED 3
citizen the servant. Under the Constitution we are governed
by laws, not by men ; the philosophy mentioned would have
us governed by men, not by laws.
It is unethical because its acceptance would deprive the
citizen of his freedom of initiative and action ; would elevate
the shiftless and penalize the thrifty ; would exalt the ignorant
and crucify the intelligent.
It is un-Christian because it is based wholly upon a ma-
terialistic conception, would abrogate the laws of nature which
are God's laws ; would subordinate and, in the end, eliminate
the spiritual side of life; all of which leads to the deification
of man.
It is economically unsound because its acceptance would
result in the abolition of the right of the individual to own
and acquire property .
The philosophy upon which the New Deal is founded is
destructive. It has appeared during the ages under many
names and has been propagated by many different groups
and organizations . It is best known to-day as socialism and
communism.
This book is offered to present briefly-and only briefly-
the nature of that philosophy ; how it gathered force on the
Continent many years ago ; how, when, and by whom it was
introduced into the United States ; how it has been know-
ingly and intentionally advanced through the use of various
organizations and movements resulting in a number of its
leading exponents being installed in key positions in the fed-
eral government ; how it has shaped much of the restrictive,
regulatory and confiscatory legislation now on the statute
books; and how, if carried to its final conclusion, it will result
in the complete socialization of this country and the abolition
of the institution of private property, the foundation upon
which rests all of our institutions, including the home and
religion.
It will be difficult for a large number to accept, in full, the
preceding statements or conclusions because the objective

4

FOOLS GOLD
sought-the abolition of the right of the individual to acquire
and own property-seems contrary to human nature . We are
not asking any one, at this time, to accept either statements
or conclusions. Before they do either we ask them to read
carefully what we have to offer in the following pages to
sustain our position .
This book is not presented as a direct attack upon either
the New Deal or the present administration at Washington .
It is emphatically nonpartisan . We do not hold the Demo-
cratic party per se responsible for many things that have been
done in its name. The truth is, that for a number of years
both the Republican and Democratic parties have imposed
several socialistic nostrums upon the American people
through the channels of legislation . Both parties-and the one
is no more responsible than the other-have established
boards, bureaus and commissions to put these socialistic pro-
posals into effect. These boards, bureaus and commissions
always started modestly and with comparatively small appro-
priations. Each succeeding year, however, they enlarged their
personnel, expanded their functions and secured larger ap-
propriations . As a nation we have been drifting. Slowly but
surely, organized agencies have maneuvered us into the swift
and destructive current of socialistic thought .
It will be charged, no doubt, by many that we have not
supported certain statements and conclusions with sufficient
evidence ; or that this evidence is incomplete ; or that this
evidence is weak and not convincing . We have no thought of
making this the last word upon the question : rather might it
better be termed the first word, since the entire subject has
not before been presented as we have undertaken to present it .
Criticism will come, possibly, from two major sources:
first, those who are fully aware of the nature of the plan to
socialize this country through legislative action ; and second,
from that large element in our population who do not believe
that such a conspiracy as we outline exists. We expect criti-
cism from the former which, no doubt, will be sharp and

THE CASE OUTLINED

5
severe. If they do not find a few minor sentences or statements
upon which to center their attacks we will be greatly sur-
prised. The criticism from the latter, however, will be of a
different nature . These critics will brush the whole thing
aside, as they have done in the past, with the simple statement,
"Oh, I don't believe that tommy-rot ; they can't do that in
the United States."
Our appeal is to that large number of honest and sincere
American citizens-and they are still in the vast majority-
who sense that something is wrong, and are ready to heed
the warning and willing to make an investigation for them-
selves.
While the early history of the organized movement to de-
stroy the private property right may seem dull and uninter-
esting-because we all think in terms of to-day-yet it is
highly important, if the disease from which we suffer is to be
cured, that the American people be advised as to certain
fundamental facts. These facts, we daresay, no one will
attempt to controvert, however much they may scoff at the
conclusion that the carrying out of the socialist-communist
program will be injurious to the American people . While the
last few chapters of this book contain what many will hold
to be the meat of the story, the preceding chapters contain
information which will make the nature of the germ of our
trouble obvious.
Any thoughtful and careful businessman, farmer or wage-
earner, whether in the so-called independent, salaried or
laboring class, before accepting some plan alleged to be for his
benefit and profit would gather all the information he could
concerning the plan, and that which motivated its advocates .
Have we, as a people, done this when it comes to govern-
ment ?
Is it not true that, when certain reforms in our govern-
mental and economic systems have been presented, every one
of us, regardless of location, occupation or political aflilia-

6

FOOLS GOLD
Lion, failed to exercise the common precaution we use when
our individual interests appear at stake?
Have we not, in the past, been swayed more by emotion
than by common sense?
Is it not time we began a searching inquiry into certain
fundamental truths in order that our children may be spared
the evil effects of similar errors?
For these reasons we ask the reader to be a bit patient with
us in the telling of our story; to read on and on even though
a chapter, or a part of a chapter here and there, may appear a
bit dull and not related to the subject involved . It is all re-
lated, all important, if we are to grasp the true nature of
just what this New Deal legislative program means to each
of us as individuals .

Chapter II
SOCIALIST PLATFORM AND NEW DEAL LEG-
ISLATION COMPARED
DURING the past two years the charge has been made many
times, both in and out of the Congress, that New Deal
legislation enacted since the 4th of March, 1933, does not
carry out the 1932 campaign pledges of the Democratic party
but, on the contrary, does carry out the 1932 platform pledges
of the Socialist party.
Most of these New Deal laws were enacted, in so far as
honest Democrats were concerned at least, on the assumption
that they would correct the economic ills from which the
nation suffered. Although many, both in and out of the Con-
gress, recognized the fact that this legislation was not only
restrictive and regulatory but that it was not in harmony
with the Democratic platform or the theory of government
expressed in the Constitution, very few, at the time they gave
it support, grasped the fact that it was, in truth, confiscatory ;
that it was imposing a tax burden upon the American people
which, if carried to its final conclusion, means that the bulk
of the property now in the hands of individuals will pass
into the hands of government in the settlement of tax bills .
Moreover, those who gave this legislation unqualified sup-
port were induced to believe that the nation faced a serious
emergency, and that this legislation would successfully meet
the situation. They did not recognize the fact that steps were
being taken which, if carried to their logical conclusion,
would mean the abandonment of constitutional government,
and the substitution of a centralized bureaucratic government
at Washington.
Since it is obvious that New Deal laws carry out many
of the major platform pledges of the Socialist party, not
7

8

FOOLS GOLD
only as they were expressed in 1932 but in the platforms of
the past, there must be a reason . There is.
Surprising as it may be to both Democrats and Republi-
cans alike, the truth is that this legislation is the result of well
defined socialist activities . For more than three decades the
socialists in the United States have been supplying both
parties with reformative laws. Writing in 1912, the late Mor-
ris Hillquit, in his day a leading socialist propagandist, said :
"Such measures of social reform are, as a rule, originally
formulated by the Socialist parties on radical and thorough-
going lines. They become the object of a persistent and wide-
spread propaganda, and finally acquire the force of popular
demands. At this stage the `progressive' and sometimes even
the `conservative' statesmen of the dominant political parties
begin to realize the political significance of the proposed
measure. The Vox Populi means votes on election
day. . . ." 1
An early platform of the Socialist party (1904), after
stating that its aim is to "seize every possible advantage that
may strengthen them to gain complete control of the powers
of government," gives the following reason for urging re-
formative laws :
". . . We are using these remedial measures as means to
the one great end of the co-operative commonwealth. Such
measures of relief as we may be able to force from capitalism
are but a preparation of the workers to seize the whole powers
of government in order that they may thereby lay hold of the
whole system of industry. . . :' 2
Since it is obvious-at least to a large number of thinking
persons-that New Deal legislation is designed to place in
the hands of a centralized government the regulation of in-
dustry, agriculture and labor ; that it is confiscatory, and that
it provides a system whereby all governmental functions now
1 "Socialism Summed Up," page 86 .
2 Proceedings National Convention Socialist Party for 1904, page 308 .
This platform is dealt with more fully in Chapter V.

performed by the States and their political subdivisions, are
handled from Washington, there must be a reason . There is.'
The theory of socialism and communism-two names for
the same thing-is that the ills from which society suffers,
social as well as economic, are due to the recognition of the
right of the individual to acquire and own property ; and
that, under the federal Constitution, as well as the constitu-
tions of the various States, the individual is protected and
defended in the exercise of this right . One way to weaken,
and so ultimately destroy, the private property right is for
the government to regulate and restrict the affairs of the
individual in the exercise of that right in such a manner
that it means neither profit nor benefit to him ; in conse-
quence he makes no effort to retain it . Another way to
weaken and so ultimately destroy that right, is to so increase
the tax levy against whatever property one may attain, that
he will find it neither profitable nor beneficial to make any
effort to retain that property . One way to put both methods
into operation is to establish a centralized government at
Washington in the hands of bureaucrats .
By placing the 1932 Socialist party platform in one column
and in a parallel column certain New Deal legislation, the
connection between the two becomes apparent . One will find
no relationship whatsoever between this legislation and the
platform declarations of the Democratic party in 1932, or any
other year. The parallel follows : 4
$The daily papers December 27th and 28th, 1935, carried a story from
Washington to the effect that a committee headed by Harold L . Ickes,
Secretary of the Interior, recommended the division of the country into ten
or twelve districts for "regional social and economic planning ." The com-
mittee further recommended the establishment of "a permanent national
development administration based upon the powers, duties and functions of
the emergency administration of public works, the Works Progress Adminis-
tration, the allotment committee and the Federal employment stabilization
office." This, if put into effect, would wipe out state lines and make
bureaucraticgovernment supreme.
4 The comparison here cited was prepared and issued by the League for
Constitutional Government, 18 East 48th Street, New York City, early in
1935. It was read into the Congressional Record by Senator Frederick Hale
of Maine, and has been used as the basis for a number of newspaper and

10

FOOLS GOLD
National Platform Socialist Party, '32
It proposes to transfer the principal
industries of the country from private
ownership and autocratic, cruelly in-
efficient management to social owner-
ship and democratic control. Only by
these means will it be possible to or-
ganize our industrial life on a basis
of planned and steady operation with-
out periodic breakdowns and disas-
trous crises .
UNEMPLOYMENT AND LABOR
LEGISLATION
i . A federal appropriation of $5 ;
ooo,ooo,ooo for immediate relief for
those in need, to supplement state
and local appropriations.
2. A federal appropriation of $5;
ooo,ooo,ooo for public works and
roads, reforestation, slum clearance
and decent homes for the workers,
by federal government, states and
cities.
3. Legislation providing for the ac-
quisition of land, buildings and equip-
ment necessary to put the unemployed
to work producing food, fuel and
clothing and for the erection of
houses for their own use.
4. The six-hour day and the five-
day week without a reduction of
wages .
5. A comprehensive and efficient
system of free public employment
agencies .
6. A compulsory system of unem-
ployment compensation with adequate
benefits, based on contributions by
the government and by employers .
7. Old-age pensions for men and
women sixty years of age and over .
8. Health and maternity insurance .
The New Deal Answers
"Redistribution of Wealth"-
"Planned Economy"-Result: Increase
of Government bureaucracy and de-
struction of the individual property
right guaranteed under the American
form of Government.
UNEMPLOYMENT AND LABOR
LEGISLATION
i. The FERA Act of 1933 ap-
proved May 12, 1933, stated as its
purpose, "to provide for cooperation
by the Federal Government with the
several states in relieving the hardship
and suffering by unemployment."
$950,000,000 for this act appropriated
in 1934 and $3,300,000,000 for Na-
tional Industrial Recovery appropri-
ated in 1934.
2. The President received a blank
check for $4,880,000,000 in 1935 for
this purpose.
3. Covered by the FSHC, Federal
Subsistence Homesteads Corporation,
RRA and ECW, Emergency Conser-
vation Works (which directs the
Civilian Conservation Corps) .
4. Covered in NRA codes, and the
Socialistic Wagner Labor Bill which
had the support of the Brain Trust.
6. Covered by the Social Security
Bill.
Bill.
Bill.
magazine articles . It is here presented with the permission of the League
for Constitutional Government .

... a ua. awaauvai u1 _nhlu laoor.
I I . Government aid to farmers and
small home-owners to protect them
against mortgage foreclosure, and a
moratorium on sales for non-payment
of taxes by destitute farmers and un-
employed workers .
12. Adequate minimum wage laws.
SOCIAL OWNERSHIP
I. Public ownership and democratic
control of mines, forests, oil and
power resources, public utilities deal-
ing with light and power, transporta-
tion and communication and of all
other basic industries .
2. The operation of these publicly
owned industries by boards of admin-
istration on which the wage-workers,
the consumers and the technicians are
adequately represented ; the recogni-
tion in each industry of the principles
of collective bargaining and civil
service.
BANKING
Socialization of our credit and cur-
rency system and the establishment of
a unified banking system, beginning
with the complete governmental ac-
quisition of the Federal Reserve Banks
and the extension of the services of
the Postal Savings Banks to cover all
departments of the banking business
and the transference of this depart-
ment of the post office to a govern-
ment-owned banking corporation .
TAXATION
r. Steeply increased inheritance
taxes and income taxes on the higher
incomes and estates of both corpora-
tions and individuals .
2. A constitutional amendment au-
thorizing the taxation of all govern-
ment securities .
Io . Loverea oy INSt/I cones, ana
Brain Trust desires to have the Child
Labor Amendment to the Constitu-
tion ratified which will regiment the
youth of America under Federal con-
trol.
ii. Covered by the HOLC, FCA,
etc.
Ii. Wagner Bill again. Result :
Federal dictatorship of wages.
SOCIAL OWNERSHIP
I. Reforestation, PA, Petroleum
Administration, Tennessee Valley Au-
thority, etc.
2. Covered by the Socialistic NRA,
but wrecking civil service.
BANKING
To a large degree covered by the
new banking law.
TAXATION
I. Partly covered by one of Roose-
velt's "must bills."

11 i'VVLO VVLII
National Platform Socialist Party, '32

The New Deal Answers
(Continued)

(Continued)
AGRICULTURE

AGRICULTURE
Many of the foregoing measures
for socializing the power, banking
and other industries, for raising living
standards among the city workers,
etc., would greatly benefit the farm-
ing population.
As special measures for agricultural
upbuilding, we propose :
I . The reduction of tax burdens,

t. Covered by processing taxes, etc.
by a shift from taxes on farm prop-
erty to taxes on incomes, inheritances,
excess profits and other similar forms
of taxation.
2. Increased federal and state sub-
sidies to road building and educa-
tional and social services for rural
communities.
3. The creation of a federal mar-
keting agency for the purchase and
marketing of agricultural products .
4. The acquisition by bona fide co-
operative societies and by govern-
mental agencies of grain elevators,
stockyards, packing houses and ware-
houses and conduct of these services
on a non-profit basis .
The encouragement of farmers' co-
operative societies and consumers' co-
operatives in the cities, with a view
of eliminating the middleman.
5. The socialization of federal land
banks and the extension by these
banks of long-term credit to farmers
at low rates of interest.
6. Social insurance against losses
due to adverse weather conditions.
7. The creation of national, re-
gional, and state land utilization
boards for the purpose of discovering
the best uses of the farming land of
the country, in view of the joint
needs of agriculture, industry, recrea-
tion, water supply, reforestation, etc.,
and to prepare the way for agricul-
tural planning on a national and,
ultimately, on a world scale.
2. FERA schools, BRA, AAA, etc .
3. Covered by FSRC, Federal Sur-
plus Relief Corporation, AAA.
4. Many legislative proposals would
extend varied forms of credit to co-
operatives and farmers, also Senate
Bill 2367 seeks to turn farm tenancy
into ownership and House of Repre-
sentatives Bill 2066 to alleviate farm
indebtedness, the Bankhead Bill, RRA.
5. Covered in part by the new
banking law.
6. Does the Government desire to
regulate weather conditions? Farm
legislation already used to cover losses
to farmers from abnormal weather
conditions under AAA .
7. Covered by AAA and Govern-
ment new tariff laws, RRA .

CONSTITUTIONAL CHANGES
I. Proportional representation .
2. Direct election of the president
and vice-president .
3. The initiative and referendum .
4. An amendment to the constitu-
tion to make constitutional amend-
ments less cumbersome .
5. Abolition of the power of the
Supreme Court to pass upon the con-
stitutionality of legislation enacted by
Congress.
6. The passage of the Socialist
party's proposed Workers' Rights'
amendment to the Constitution em-
powering Congress to establish Na-
tional system of unemployment,
health and accident insurance and
old-age pensions, to abolish child
labor, establish and take over enter-
prises in manufacture, commerce,
transportation, banking, public utili-
ties and other business and industries
to be owned and operated by the
government, and, generally, for the
social and economic welfare of the
workers of the United States .
7. Repeal the 18th Amendment
and take over the liquor industry
under government ownership and
control, with the right of local option
for each state to maintain prohibition
within its borders.
CIVIL LIBERTIES
I. Federal legislation to enforce the
First Amendment to the Constitution
so as to guarantee freedom of speech,
press and assembly, and to penalize
officials who interfere with the civil
rights of citizens .
2. The abolition of injunctions in
labor disputes, the outlawing of yel-
low dog contracts and the passing of
laws enforcing the rights of workers
to organize into unions.
3. The immediate repeal of the
Espionage Law and other repressive
legislation, and the restoration of civil
and political rights to those unjustly
convicted under wartime laws.
4. Legislation protecting aliens
from being excluded from this coun-
SOCIALIST PLATFORM
CONSTITUTIONAL CHANGES
4. Already proposed by a Cabinet
member.
5. House of Representatives Bill
7997 proposes drastic restriction of
the Supreme Court's power, advocated
by many New Dealists .
6. Wagner Labor Bill again. Dela-
ware Corps ., PWA, NRA.
7. FACA, Federal Alcohol Control
Administration .
CIVIL LIBERTIES
This un-American program illus-
trates why only 2'/z % of the popular
vote in 1932 was cast in favor of the
un-American Socialistic Party Plat-
form.
13
2.
3-
4-
The Secretary of Labor is
doing her part to carry out
this program .

14 FOOLS GOLD
The New Deal AnswersNational Platform Socialist Party, '32
(Continued)

(Continued)
try or from citizenship or from being
deported on account of their political,
social or economic beliefs, or on ac-
count of activities engaged in by them
which are not illegal for citizens .
5. Modification of the immigration
laws to permit the reuniting of fami-
lies and to offer a refuge to those
flexing from political or religious
persecution .
5.
The Secretary of Labor is
doing her part to carry out
this program.
THE NEGRO

THE NEGRO
The enforcement of Constitutional

This New Deal legislation was de-
guarantees of economic, political and

feated after great effort.
legal equality for the Negro. The
enactment and enforcement of drastic
anti-lynching laws .
INTERNATIONAL RELATIONS

INTERNATIONAL RELATIONS
While the Socialist party is opposed

The Socialist Party is a World
to all war, it believes that there can

Party, not an American Party.
be no permanent peace until Social-
ism is established internationally . In
the meantime, we will promote all
measures that promise to promote
good will and friendship among the
nations of the world including :
r. Reduction of armaments, leading
to the goal of total disarmament by
international agreement, if possible,
but if that is not possible by setting
an example ourselves . Soldiers, sailors,
and workers unemployed by reason of
disarmament to be absorbed, where
desired in a program of public works
to be financed in part by the savings
due to disarmament. The abolition
of conscription, of military training
camps and the R.O.T.C.
2. The recognition of the Soviet

2. The New Deal "Brain Trust"
Union and the encouragement of put this over.
trade and industrial relations with
that country .
3. The cancellation of war debts

3. Is the New Deal making any
due from the allied governments as effort to collect War Debts?
part of a program for wiping out war
debts and reparations, provided that
such cancellation does not release
money for armaments, but promotes
disarmament.

SOCIALIST PLATFORM

15
4. The entrance of the United

4. This New Deal legislation was
States into the World Court .

defeated.
5. The entrance of the United

5. A "Brain Trust" hope ; will be
States into the League of Nations proposed later.
under conditions which will make it
an effective instrument for world
peace and renewed cooperation with
the working class parties abroad to
the end that the League may be trans-
formed from a league of imperialist
powers to a democratic assemblage
representative of the aspirations of the
common people of the world .
6. The creation of international

6.
economic organizations on which la-
bor is adequately represented, to deal
with problems of raw material, in-
vestments, money, credit, tariff and
living standards from the viewpoint
of the welfare of the masses through-
out the world .
7. The abandonment of every de-

7.
gree of military intervention by the

More New Deal un-Ameri-
United States in the affairs of other

can philosophy.
countries. The immediate withdrawal
of military forces from Haiti and
Nicaragua.
8. The withdrawal of United States

8.
military and naval forces from China
and the relinquishment of American
extra-territorial privileges.
9. The complete independence of

9.
the Philippines and the negotiation of
treaties with other nations safeguard-
ing the sovereignty of these islands .
so. Prohibition of the sales of
munitions to foreign powers.

Chapter III
SOME OF THOSE IN COMMAND AT
WASHINGTON
TO get a clear concept of any great movement, one must take
into account not only the nature of the program advanced
but the background of those who are in command of that
program. You have before you a comparison of the 1932
platform of the Socialist party and the legislation adopted by
the New Deal to carry out these planks . Let us now turn to
some of those in command at Washington. One finds, upon
investigation, that not only is the legislation in question out
of harmony with the 1932 platform declarations of the Demo-
cratic party, but that the persons selected to administer this
legislation are not Democrats .
The primary purpose of this book is to expose a dangerous
fallacious philosophy of government and economics ; and to
point out how, practically unopposed, that philosophy gained
followers in the United States. In order, however, to make
the case clearer from the start, it seems desirable here to
inject the names of a few in appointive positions whose
assumed authority appears far greater than the constitutional
authority of the members of the Congress elected by the
people. Those in the public eye to-day, commonly labeled
brain trusters, are mere actors upon the stage, however . When
one of them disappears from the scene-as in the cases of
Raymond Moley, General Hugh Johnson and Donald Rich-
berg-others step from the wings to take the part thus made
vacant.
It will be recalled that in 1924 there appeared in the political
arena a third party . Its inception is found in a resolution
approved by the Socialist executive committee in 1921. The
name adopted for this third party was Progressive, on the
16

THOSE IN COMMAND

17
assumption, no doubt, that it would thus attract many of
those who followed the late Theodore Roosevelt in a third
party movement under that name some years before . The
late Senator Robert M. LaFollette, elected to the Senate from
Wisconsin as a Republican, headed this ticket as candidate
for president. Senator Burton K. Wheeler, elected from Mon-
tana as a Democrat, was named for second place .'
One is forced to the conclusion, after a careful study of
the facts, that what is now termed the New Deal party-
and that name is being rather commonly given to the ele-
ments in the saddle at Washington-is but the Progressive
(Socialist) party of 1924 seeking to conceal its identity by
wearing stolen clothing . This conclusion is forced both by
the nature of the legislation adopted, and by the personnel
of those holding key positions in the federal government .
The number of persons who supported the Progressive
(Socialist) ticket in 1924 now on the federal payroll is rather
impressive.
First and foremost of these is Basil M. Manly, a member
of the Federal Power Commission. In 1924 he was the direct-
ing genius of the People's Legislative Service, under which
name a bloc of Senators and Representatives-some of them
elected as Republicans and some as Democrats-operated .
Mr. Manly was a member of the executive committee of the
National Conference for Progressive Political Action, the
name of the organization sponsoring the convention which
nominated Mr . LaFollette 2 A book called "Where LaFollette
Stands on Fifty Living Issues" states that it was "compiled
by Basil M. Manly" and published by the "LaFollette for
President Committee ."
This little booklet written, or at least edited, by Mr . Manly,
is of special interest at this time, in view of the fact that one
of the planks of the platform adopted proposed to put the
1 A more complete account of this movement and elements involved in
its formation will be found in Chapter IX .
2 More complete data on this organization will be found in a later chapter .

18

FOOLS GOLD
government in the electric light and power business in com-
petition with its citizens, which plank has been fully carried
out by the Tennessee Valley Authority . Presumably in hearty
sympathy both with the plank in the platform of the Pro-
gressive (Socialist) party in 1924, and with the action of the
New Deal party since March q, 1933, Mr. Manly has been
made a member of a body that sits in judgment upon the acts
of the privately owned utility corporations .
Donald Richberg is another of those who, in 1924, was
prominently connected with the Progressive (Socialist) move-
ment. While Mr. Richberg is one of the actors who has been
forced from the play-not because his acting was bad but
because, it is rumored, temperamentally he did not har-
monize with others in the cast-for two years he was one of
the leaders of the brain trust . During those years his very
word was sweet music to the ears of all who believed that,
through the operation of New Deal legislation, the wealth
of the United States could be completely socialized.
Mr. Richberg was chairman of the resolutions committee
of the Progressive (Socialist) convention . Among the reso-
lutions adopted was one favoring the submission of "a con-
stitutional amendment providing that Congress may by enact-
ing a statute make it effective over a judicial veto." That
means the nullification of a decision of the Supreme Court
as to the constitutionality of a law. The socialists, and all who
accept their theory, recognized then, as they do now, that the
Supreme Court is the one department of government not to
be swayed by popular clamor . It is to be presumed that while
one of the principal advisors to President Roosevelt, Mr.
Richberg was in complete harmony with this plank in the
Progressive (Socialist) platform .
Mr. Richberg is-or at least was-a member of the Advisory
Council of the Committee on Coal and Giant Power estab-
lished by the League for Industrial Democracy . This is a
socialist subsidiary organization the members of which have
sought to make palatable the declaration of Marx, "Abolition

THOSE IN COMMAND

19
of private property," by changing this slogan to read "Pro-
duction for use and not for profit ."
Frank P. Walsh was among the leading supporters of the
Progressive (Socialist) ticket in 1924. His name appeared on
the ballot as a LaFollette elector from New York . Mr. Walsh
is now one of the active attorneys supporting New Deal
policies.
Rex Tugwell, into whose hands nearly a billion dollars of
taxpayers' money has been placed to carry out a socialist
housing experiment, the very nature of which indicates its
ultimate failure, was among the rather large number of
professors who supported the Progressive (Socialist) ticket
in 1924.
Prof. Tugwell, possibly more than any other member of
the brain trust, has made clear its communist connection.
The New York Times in reporting one of his public ad-
dresses, said
"Mr. Tugwell held that the nation was witnessing the
`death struggle of industrial autocracy and the birth of demo-
cratic discipline: There was no reason to expect that the
disestablishment of `our plutocracy' would be pleasant.
-
These historical changes never are pleasant,' he said.
`We have, however, the duty of avoiding violence as the
process goes on, and this is why I regard the coming months
as among the most critical ones of our history .
"'Our best strategy is to surge forward with the workers
and the farmers of the nation, committed to general achieve-
ments, but trusting the genius of our leader for the disposition
of our forces and the timing of our attacks."' 3
Shortly after the inauguration of President Roosevelt, Prof .
A. A. Berle, Jr., made his appearance in Washington as one
of the original members of the brain trust . He later was
"loaned" to the LaGuardia "progressive" administration in
New York City, evidently to perform the function of a liaison
officer. Immediately after adjournment of the convention that
3 October 28, 1935 .

20

FOOLS GOLD
nominated the late Robert M . LaFollette for president on the
Progressive (Socialist) ticket, Prof . Berle sent the nominee a
congratulatory telegram. In that telegram appeared this lan-
guage : "We believe that the time has come for a new deal ."
J. A. Franklin, Sidney Hillman and Rose Schneiderman,
all named as members of the Labor Advisory Administration,
were members of the Progressive (Socialist) campaign com-
mittee in 1924. Leo Wolman, another member of the Labor
Advisory Administration, was a supporter of the Progressive
(Socialist) ticket.
Edward F. McGrady, now an assistant secretary of Labor,
was a supporter of the Progressive (Socialist) ticket in 1924.
The New York Times says that Mr . McGrady, returning
from a trip to North Carolina, reported that the Federation
of Labor of that state "endorsed LaFollette and Wheeler ." s
There is a large army of lesser lights who, in 1924, sup-
ported the Progressive (Socialist) ticket now on the federal
payroll. Among those in this army whose names are fairly
well known are:
Frederick C. Howe, chairman, Consumers Council, AAA ;
H. T. Hunt, general counsel of the Federal Emergency
Administration; William M. Leiserson, secretary, National
Labor Board; Paul H. Douglas, on Labor Board Advisory
Committee; Prof. John A. Lapp, on Labor Board Advisory
Committee; Prof. Karl Borders, an NRA Research Investi-
gator; William E. Sweet, who has been something of a gen-
eral propagandist for the New Deal, now connected with the
Social Securities Administration ; Heywood Broun, Theater
Codes Advisor who lost his job when the Supreme Court
declared that law unconstitutional, none of whom, it should
be noted, has ever been known as an outstanding Democrat .
It would require far more space than is here available to
make anything like a complete list of those who, in 1924,
supported the Progressive (Socialist) ticket and are now hold-
4 Undated Press Release.
Is August 12, 1924 .

THOSE IN COMMAND

21
ing rather important positions in a so-called Democratic
administration. Indeed, the compilation of such a list is an
endless task since all federal payrolls are not available to the
public. The reader, acquainted with political conditions in
1924, may, however, for his own edification, enlarge this list
by noting those who, of his personal knowledge, then sup-
ported the Progressive (Socialist) ticket and thus aided in
the defeat of the Democratic candidate, Hon. John W. Davis,
for president.
With the failure of the Progressive (Socialist) party to gain
control of government, the plans were changed, but the
original Conference for Progressive Political Action which
guided the Progressive (Socialist) campaign in 1924, did not
fade out of the picture although not operating, at all times,
under that name. The leaders of the group with their eyes
on the 1932 election and with a plan to "steal" the Democratic
Party s fairly well outlined, issued a call for a conference in
Washington in March, 1931. The call was signed by Senators
Norris, as chairman, LaFollette, Cutting, Costigan and
Wheeler. It should be noted that the first three elected to the
Senate as Republicans supported the candidacy of Franklin
D. Roosevelt. Senator Wheeler was the running-mate of
LaFollette in 1924. This conference was composed of 164 dele-
gates according to the New York Times.7 Of this number,
eighty-one were openly connected with the Progressive-
Socialist movement in 1924 and others may have been . Two
of the delegates to this convention were rewarded by seats in
the Roosevelt cabinet. They are Daniel C. Roper and Harold
L. Ickes.
At least six others seated in this convention-there may
have been more-were likewise rewarded by federal appoint-
ments. They are: Frank Murphy, made Governor of the
Philippines; Isador Lubin, now commissioner of Labor Sta-
tistics, Department of Labor ; Mary Anderson, director of
6 See Chapter X.
7 March 12, 1931.

22

FOOLS GOLD
Women's Bureau, Department of Labor ; Smith W. Brook-
hart, named head of the bank established to promote trade
with Soviet Russia and which found no trade to promote ;
Abel Wolman, state engineer, Maryland, for Federal Emer-
gency Administration of Public Works, and Leo Wolman,
previously mentioned .
In addition to those who were prominent in the Progres-
sive (Socialist) movement of 1924, and those who took part
in the so-called Progressive conference in 1931, now holding
appointive positions under Franklin D. Roosevelt, are many
others of like mind. Among them are : Henry A. Wallace,
Secretary of Agriculture; Henry Morgenthau, jr., Secretary
of the Treasury, and at least two of his assistants, Herbert
E. Gaston and Miss Josephine_Roche; Arthur E. Morgan and
David E. Lilienthal, directors of the Tennessee Valley Au-
thority; Harry L. Hopkins, in charge of relief, and a large
number of his assistants. With possibly a few rare exceptions,
none of these appointees has been known for loyalty to the
Democratic party, while some of them have been openly
connected with the left wing of the Republican party .
The enactment of New Deal legislation, the naming of
those who have been supporters of the socialist theory to key
positions in the federal government, the desperate attempt to
foist this legislation, regardless of its constitutionality, upon
the American people by propaganda, agitation and ballyhoo,
is the culmination of more than sixty years of well-designed
and cleverly executed work on the part of organized minori-
ties in the United States . Back of it all is a dangerous, destruc-
tive, fallacious doctrine which has ever had an appeal to those
who are not addicted to personal initiative and whose fond-
ness for work is nil.
The story of a plan to destroy the institution of private
property and confiscate the wealth of this nation has never
been fully told. It is time it was. The reader may not be
impressed with the comparison of the 1932 Socialist platform
with New Deal legislation ; he may see no connection between

the naming of supporters of the Progressive (Socialist) ticket
in 1924 as key men in a so-called Democratic administration,
and a well defined program to socialize this country . We ask
all such to join with us in considering the nature of the
underlying philosophy of socialism and communism ; and to
journey with us as we follow the effort of proponents of this
philosophy to gain political control in the United States .

Chapter IV
THE PHILOSOPHY OF DESTRUCTION
J. GEORGE FREDERICK who, one is forced to assume
from the nature of his writings, is a New Deal advocate, says :
"Always behind a genuine revolution, there is also a basic
philosophy and point of view ."'
Mr. Frederick recognizes two facts which the public at
large seem not to realize ; first, that the program of legisla-
tion initiated by the brain trust is revolutionary ; and, second,
that the program is not something new but has its root in a
basic philosophy. The question, then, is what is that
philosophy?
It is the age-old philosophy of destruction as opposed to
the philosophy of construction ; it is the philosophy of evil
as opposed to the philosophy of good . To-day it is best known
as socialism and communism. When one starts out to locate
the origin of the philosophy of destruction he finds himself
delving into ancient history and mysticism . Many students of
the subject insist it is presented allegorically in the earlier
books of the Old Testament. Others place an entirely different
interpretation upon certain language . This much, however, is
certain and the record is complete, that some centuries ago-
the exact time is not locatable-in the attempt of man to
discover the source of evil, the theory was advanced that the
cause of human suffering was the natural concomitant of the
institution of private property . From this premise the conclu-
sion was logically reached that, abolish this institution, place
all property, all wealth and all production, in the hands of
society as a whole to be administered for common good, and
human suffering would disappear .
Strange as it may seem, the early exponents of this theory
""A Primer of `New Deal' Economics," Business Bourse, 1933, page 151.
24

THE PHILOSOPHY OF DESTRUCTION 25
were not revolutionists; government and economics were not
involved in their program; they were thinking wholly along
idealistic lines.
As early as 1516 Sir Thomas More presented his fictional
work, "Utopia," the name of a country where this system of
community ownership was practiced . Many writers, in later
years, pictured similar lands of promise. Edward Bellamy's
"Looking Backward" and Ignatius Donnelly's "Czsar's Col-
umn" appealed to a great many. A careful perusal of these
fictional accounts of the land of Great Promise wherein there
is naught but peace, happiness, plenty and contentment, de-
veloped the fact that the writers wholly overlooked the
existence of certain well known human traits-laziness, shift-
lessness, avarice, greed, envy, jealousy, lust, etc .
A number of well-meaning persons tried to put into prac-
tice the perfect social order fictionally portrayed by Sir
Thomas More and others . None was successful; they all
crashed on the rock of human weaknesses .
When it became apparent to those who had accepted the
theory mentioned that these experiments were unsuccessful,
instead of seeking to locate the fault in the fallacy of the
premise, they sought some plausible reason for the failure .
It was then that they took the position that, since govern-
ments recognize the right of the individual to own property,
protecting and defending him in the exercise of this right,
the thing to do was first to destroy the government in ques-
tion, and so abolish the right. This accomplished, they held,
would mean that all wealth would go into a common pool
and be administered for the benefit of all .
That theory, first presented nearly two hundred years ago,
resulted in the formation of a secret group which planned
the destruction of the then existing, so-called capitalist gov-
ernments. This organization, established in Bavaria in 1776,
was known as the Order of the Illuminati.
Although short-lived as an open society, because the gov-
ernment detecting its subversive character dissolved it and

26

FOOLS GOLD
arrested a number of its leaders, it continued to operate under-
ground. Some of its leading members took part in the French
Revolution at the close of the Eighteenth century . When the
good people, not only of France but of the civilized world,
began to realize the nature of the doctrine underlying the
excesses of murder and rapine, and the character of organ-
izations supporting these excesses, the reaction was so great
that the philosophy itself was more or less buried for about
a half century . It remained for Karl Marx to resurrect it,
cloak it with the idealism of so-called socialists who preceded
him, and present it under the name of communism .
While much has been written about Marx being the
founder of socialism and communism, the fact remains that
he founded nothing, enunciated nothing new, created no new
idea. The philosophy he presented was clearly that of destruc-
tion. The meat of the entire Marxian program will be found
in the battle-cry of Baboeuf, the French revolutionist, "Let
everything return to chaos, and from chaos let there rise a
new and regenerated world ." 2
Marx was a pronounced plagiarist . Possibly his persistent
robbery of others of their ideas encouraged him to urge a
policy of robbing every one of their material possessions
through a system of confiscation. Until Marx's time, the sug-
gestion had not been made admittedly that force and violence
-he called it revolution-should be adopted as a means to
destroy the institution of private property, but the idea was
nevertheless old.
With force and violence as the keynote of this program,
Marx sought to hide its hideousness by cloaking it with
idealism and presenting it as a plan for the aid and betterment
of the wage-earners of the world.
The sum and essence of the philosophy of destruction as
presented to-day and called communism-known by a large
element as socialism-is found in the "Communist Mani-
2 "Contemporary Socialism," John Rae, Scribner's, r9oi Edition, page i8 .
Name of person cited is spelled several ways. We follow that of Professor Rae.

festo," written and issued by Marx in 1848 with preface by
Friedrich Engels, his co-worker and financial backer . Marx
writes
"The theory of the Communists may be summed up in
the single sentence: Abolition of private property ." s Lest this
language be not sufficiently explicit, he adds, "You reproach
us with intending to do away with your property . Precisely
so : that is just what we intend ." 4
Professor F. J. C. Hearnshaw of London College, England,
has accurately analyzed the Manifesto upon which is based
not only socialism and communism but, in the United States,
what to-day is termed New Dealism . He writes : "The fascina-
tion of the Manifesto consisted in the facts that,
"(1) it diverted socialism from the policy of creating ideal
communities by its own exertions to the more attractive task
of seizing property and appropriating institutions already in
existence;
"(2) it abandoned the method of secret conspiracy and
subterranean operation hitherto practised by communistic
coteries-humorously camouflaged as `Leagues of the Just' or
`Societies of the Seasons'-and openly proclaimed war upon
all established creeds and organisations ;
"(3) it formulated a philosophy of history which filled the
credulous with hope and confidence, for it told them that
communism was the next predestined and inevitable phase in
social evolution, and that so far from having to fear such
failure as had overwhelmed the utopians, they had only to
sit still and watch the predetermined development of com-
munism out of capitalism;
"(4) in order that they might assist the fore-ordained and
hasten the inevitable, it provided them with a practical pro-
gramme of great allurement, the keynote of which was
`abolish, confiscate, appropriate' ;
."(5) it held out a prospect of revenge, destruction, and
8 Rand School Edition, page 30.
4 lbid., page 33 .

28

FOOLS GOLD
sanguinary devastation-the overthrow and humiliation of
thrones, aristocracies, and above all the hated bourgeoisie-
that appealed with irresistible attraction to the passions of
envy, hatred, and malice which filled Marx and his associates
with fanatical and truly diabolical fury ."
The Marxian philosophy, under the name of socialism, was
introduced into the United States by a group of refugees
from Germany during the '6os of the last century . Marx had
been forced to leave the Fatherland, seeking safety in London
from which point he continued to issue his inflammatory
utterances. His followers, in Germany and central Europe,
accepting each of his statements without questioning either
their correctness or the sincerity of the man giving them
voice, continued to carry on subversive activities . The Imperial
Government of Germany was not slow in noting the nature
of the Marxian doctrine and, in effect, outlawed those en-
gaged in its propagation. Many of them headed straight for
the United States. No objection was made to their entrance ;
no examination of their physical or mental qualifications . We
asked no questions of the immigrant ; he volunteered no
information.
"Discontented revolutionists came pressing in from Europe
" writes Rowland Hill Harvey . "Verily New York was
a hodgepodge of revolutionary sects and nationalities." 6 "The
United States has always seemed to European radicals a
promising field for their experiments and ideas," 7 writes Prof.
Norman J. Ware.
The refugees we have mentioned began to arrive in the
United States when the nation was torn with civil strife.
They were unlike their fellow-countrymen who had preceded
them-and many who later followed-in that this refugee
s "A Survey of Socialism," F . J. C. Hearnshaw, Macmillan, 1928, pages
221-2 .
6 "Samuel Gompers," Rowland Hill Harvey, Stanford University Press,
1935, Page 16 .
7 "The Labor Movement in the United States," Norman J . Ware, D.
Appleton and Co., 1929, pages 303-304 .

element remained in the cities and began the propagation of
the revolutionary theories of Marx . Pretending their purpose
was to benefit the workingman, they were not workingmen
themselves, but on the contrary, as Prof . Ware states, were
"intellectuals and knew no trade but that of propaganda ." s
Prof. O. D. Skelton calls attention to the fact that they were
immigrants, "fighting their Old World battles in the New." s
"The intelligent and educated German worker and the
idealistic intellectual brought their socialism with them to
America," writes Nathan Fine. "Immediately upon landing
they set themselves the task of organizing their fellow-coun-
trymen and then reaching out for the native and English-
speaking workers. The socialist and free-thinking German
immigrant was handicapped by a foreign tongue, however,
and was up against an individualistic Anglo-Saxon tradition,
a religious people, and relative prosperity and economic
opportunity." 10
In other words, socialism originally presented in the United
States as a labor movement, was in no sense advanced by
wage-earners. Not only was the founder of socialism, Karl
Marx, not a wage-earner, but those who introduced this
philosophy of destruction into the United States were not
wage-earners, for they "knew no trade but that of propa-
ganda."
". . . it was a thankless task to preach a foreign philosophy
of discontent, to attempt to enlist under the banner of inter-
nationalism the proud patriots of a new and self-confident
country, and to persuade the free-born American that his
boasted equality was but a name . . . ," 11 says Jessie Wallace
Hughan, a well-known socialist writer .
But these Marxian socialists continued to preach what Miss
Hughan calls "a foreign philosophy of discontent," that being
87bid., page 310.
e "Socialism : A Critical Analysis," 0 . D. Skelton, 1911, page 302.
10 "Labor and Farmer Parties in the United States," Nathan Fine, Rand
School of Social Science, 1928, page 9o .
11 "What Is Socialism?" Vanguard Press, 1928, page 127.

30

FOOLS GOLD
as near as we have ever known an admitted socialist to
recognize it as the philosophy of destruction. The seed planted
in time bore fruit. That fruit, in the nature of restrictive and
regulatory legislation, contrary to "individualistic Anglo-
Saxon tradition," is now being fed the American people in
allopathic doses . A "religious people" have been transformed
into an irreligious people, "relative prosperity and economic
opportunity" have been changed into a business depression
and restrictions placed upon the rights and liberties of the
people by legislative decree, as will be established later in
reviewing New Deal legislation . These changes, all of which
evidence the underlying philosophy of destruction, were not
brought about by any fault in our form of government or
our economic system. Instead, they are the result of a per-
sistent and continued assault emanating from socialist head-
quarters upon the institution of private property .
With this brief account of the origin and nature of the
philosophy which underlies what is termed New Dealism
to-day ; and with some understanding of the aims and pur-
poses of those who introduced it into the United States, we
turn our attention to the methods employed to advance that
philosophy until it became an organized movement suffi-
ciently powerful to force both Republican and Democratic
parties to adopt, in part at least, some of its alleged reforma-
tive schemes.

Chapter V
THE PHILOSOPHY OF DESTRUCTION BE-
COMES ORGANIZED IN THE U . S.
IN the period between 187o and 19oo American workingmen
in various crafts were seeking some form of organization that
might legitimately secure for them shorter hours, increased
wages and better working conditions . As they were all indi-
vidualists, anything of a socialistic nature was distasteful.
They had no thought of an assault upon either the form of
government or the system of economics ; indeed, they were
personally loyal . They did not believe that the men who paid
them wages were their enemies ; they sought to work in
harmony with their employers .
The professional propagandists who had taken refuge in
the United States, concealing the true nature of their doctrine
by presenting their program as one to benefit the wage-
earners, gained the attention of a few American workingmen
but others resented the interference of "these foreigners ."
The alien socialists, finding they were having little influence
with the honest workingman, adopted a system of boring
from within all legitimate labor organizations either to cap-
ture or to destroy them. It is this system, to which little
attention has been paid, that clearly marks the path of social-
ism from its first appearance in the United States to date .
One has but to follow its well blazed trail to note how, step
by step, first through boring from within labor unions, then
from within farmers' organizations, then permeating colleges
and universities, and later penetrating organizations and
societies of every kind and nature, the socialists have moved
forward all along the line until their final triumph in 1933
when, by "stealing" the Democratic party, they took political
control of the nation.
31

32

FOOLS GOLD
"What they could not capture they were frequently able
to destroy," writes Professor Norman J. Ware.' When labor
unions were captured they were at once officered by clever
socialist agitators and propagandists, and although claiming
to be legitimate labor organizations were, in truth and in fact,
subsidiaries of the international socialist movement . "Their
adherents enter into the labor organizations, and edit labor
papers which are not avowedly socialistic, and yet advocate
what is essentially socialism," writes Prof . Richard T. Ely.2
When it was found impossible to capture a labor union,
the next step was to turn full attention to attack upon it in
order to destroy its effectiveness as an opponent to their
program. Every possible move was made to weaken its mem-
bership and its leaders were often maliciously and viciously
attacked. The theory supporting this method of campaigning
was that the public would readily accept and act upon charges
of dishonesty or lack of sincerity made against such leaders, a
theory which experience of more than four decades has
proven correct.
During the '7os and '8os there was much political confusion .
Dissatisfied elements, then as now, sought to express them-
selves through a new political party . The largest of these for
the period was the Greenback party. This did not escape
socialist penetration, for the party was made up largely of
workingmen. "Greenbackism was in the air," writes Norman
J. Ware, "and the eastern socialists were beginning their long
series of forays into the labor movement with the intent to
capture it for the revolution." 3 Referring to a convention
held at Pittsburgh, in 1876, which adopted a greenback plat-
form, Professor Ware writes :
". . . it permitted the New York socialists for the first time
1 "The Labor Movement in the United States," page 36 .
2 "Socialism and Social Reform," Richard T . Ely, Thomas Y. Crowell Co .,
1894, page 68.
3 "The Labor Movement in the United States," page 35 .

to cross the Alleghenies in force and practice their best trick
of withdrawing from any meeting they could not dominate ." 4
By 1874 the International Workingmen's Association, the
name under which the First International dominated by Marx
was known, had thirty affiliated groups in the United States .
With possibly two exceptions every one of these was formed,
officered and directed by aliens many of whom did not as yet
speak the English language.5
In 1876 this little group of alien propagandists formed what
was termed the Workingmen's party of the United States, the
name of which, in 1877 was changed to the Socialist Labor
party. Among those prominent in both conventions were
Adolph Strasser and Peter J. McGuire. The former, an ardent
socialist, was in part responsible for the formation of the
Cigarmakers Union which at that time was composed very
largely of socialists. McGuire was just a plain, noisy agitator .
"His attack upon private property," writes Rowland Hill
Harvey, "drew down upon his head the wrath of the Church
and the anger of his father, who stood upon the steps of a
church in New York City and pronounced the words which
disowned his wayward son."s
Within the socialist movement in the United States then-
and still more pronouncedly to-day-were two factions . One
held to the political point of view now called legislative
action; the other insisted upon the use of force and violence,
largely at that time, through strikes . Both factions, however,
as yet, were carefully feeling their way .
The most prominent labor organization, largely local, how-
ever, was the Knights of Labor established in 1869 by Uriah
S. Stephens. It had attained considerable strength and, above
all, a splendid standing with both the public and wage-earner
because its methods were those natural to a union composed
41bid ., page 35, footnote .
a See Appendix "B" for fuller information on the Internationals .
6 "Samuel Gompers," page t9 .

34

FOOLS GOLD
almost entirely of American-born . A spirit of fairness was
shown in all of its dealings with employers .
Immediately following the formation of the Socialist Labor
party, its leaders started an intensive drive to force American
workingmen into its membership. The basic philosophy of its
platform-the abolition of the private property right-being
repulsive to the honest worker, induced him to seek member-
ship in some organization founded on true Americanism.
The result was that, in 1878, the Knights of Labor became
a national organization. There was nothing socialistic in its
program. "In fundamental aim and program the Knights of
Labor was opposed to socialism," writes Nathan Fine .7
The organization had no fight with capital. "We mean no
conflict with legitimate enterprize, no antagonism to neces-
sary capital," reads a part of the program . The platform
continues, "We shall, with all our strength, support laws
made to harmonize the interests of labor and capital . . . ." 8
The socialists finding that, even though they had vigorously
bored from within the Knights of Labor, they could not
capture it, planned its destruction. Two methods were to be
pursued; the first to bring the organization into disrepute
by the commission of some overt unpopular act in the name
of the Knights; 9 the other the formation of an opposition
union.10 The opposition organization, formed in 1886, known
as the Federation of Trade and Labor Unions, changed its
name the next year to the American Federation of Labor .
Samuel Gompers, prominent in the Cigarmakers Union, was
placed in charge of its activities .
"The Cigarmakers at this time contained many men in
v "Labor and Farmer Parties in the United States," page 147 .
8 "Samuel Gompers," pages 28-9 .
a One is forced to wonder if what the socialists are doing in the name of
the Democratic party is for the purpose of wrecking that political organization .
10 The recent action of a large element in the American Federation of Labor
in planning the formation of a new labor group to advance industrial
unionism-and that seems a nice term to cover its socialist inception-
parallels the methods adopted by the socialists in the '8os to wreck an
organization they could not capture .

their ranks who had participated in revolutionary political
movements in Germany, Austria, or the Scandinavian coun-
tries,"" writes Mr. Harvey. The dominant figure in this
union was Adolph Strasser, born in Hungary and who, to
judge from his many utterances, was in sympathy with the
force and violence element in the socialist movement .
Strasser, it would appear, became Gompers' mentor . As a
cigarmaker, Gompers came in daily contact with the Marxian
socialists who, with care and seeming sincerity, expounded
their philosophy to him . It evidently made an impression, but
it remained for Ferdinand Laurrell, one of the revolutionists
above mentioned, to give him a proper socialist background .
Peter J. McGuire, the fiery agitator, was another man close
to Gompers when the American Federation of Labor was
formed.
The Knights of Labor were at the zenith of their glory
when the American Federation of Labor appeared upon the
scene. Strasser, McGuire, Gompers and many others taking
part in the formation of the Federation held membership
cards in the Knights .
Stephens, the founder of the Knights, had sensed the possi-
bility of an opposing socialist union some years before . As
early as 1879, writing to a prominent member of the Order,
he said:
"You must not allow the socialists to get control of your
assembly. They are simply disturbers, and only gain entrance
to labor societies that they may be in better position to break
them up. You cannot fathom them, for they are crafty, cun-
ning and unscrupulous. . . . I have had an experience with
them . . . and I warn you against having anything to do
with them either individually or as a body. . . .f 12
In the East, socialist members of the Knights who had
bored from within, and had helped form the opposition
Federation of Labor, began to declare unwarranted boycotts .
11 "Samuel Gompers," page 17.
12 "Labor and Farmer Parties in the United States," page 147 .

36

FOOLS GOLD
As honest workingmen were compelled to leave their jobs
this caused much dissatisfaction and ill-feeling . In the West
the force and violence element, most of whom were known as
anarchists, inaugurated a reign of terror. Finally they called
a strike against the McCormick Harvester Company at Chi-
cago. Day after day crowds of men-there were few, if any,
honest employees of the harvester concern among them-
assembled in the streets around the plant seeking to prevent
men going to work. Workingmen were assaulted and the
members of their families threatened . This finally resulted in
an open clash. The police interfered to preserve order . A
number of persons were killed . A few days later, upon the
call of an anarchist editor, a great protest meeting was held
in Haymarket Square. While the crowd was being harangued,
some one threw a bomb into the police formation . Several
officers died as the result of the injuries received. Indignation
was so great that those alleged to have been connected with
this affair were arrested . A number were convicted and
several hanged .
The impression was at once gained, due to socialist propa-
ganda, that the Knights of Labor, in some manner, had a
hand in, or was responsible for, the Haymarket affair . The
Knights vigorously protested . Their official paper, the Knights
of Labor, stated that the organization had "no affiliation,
association, sympathy or respect for the band of cowardly
murderers, cutthroats and robbers, known as anarchists .
. . .
f 13 Membership in the Order rapidly decreased . The
organization had not been captured ; it was being destroyed.
Unjust boycotts and unsuccessful strikes, forced upon the
Knights by the socialists who bored from within, with the
culminating Haymarket affair, was the poison that brought
death some years later .
For a time all went well within the American Federation
of Labor. Its membership increased as that of the Knights
decreased. Being of socialist inception the growing member-
1s "The Labor Movement in the United States," page 316 .

ship of American workingmen caused the alien agitators to
fear that possibly they may have erected a Frankenstein.
Hence they inaugurated a program of control . "The Socialists,
having resolved to convert the Federation to their cause, pro-
ceeded to bore from within, that is, to push their organiza-
tions into the trade unions and work for their program,"
writes Mr. Harvey.14
In the 1890 convention there was a clear-cut issue between
the socialist members and the American workingmen . The
Socialist Labor party sought to seat a delegate . His right to a
place in the convention was denied . This caused the socialists
to renew their efforts . In the meanwhile the Socialist Labor
party had fallen into the hands of Daniel DeLeon, an ardent
Marxist and a bitter opponent. Plans to commit the Federa-
tion officially to socialism came from the West. Thomas J.
Morgan, an avowed Marxist and secretary of the International
Machinists Union, in the 1893 convention offered a resolution
to go to a referendum of the members, which resolution con-
tained pure socialist proposals . Among them were:
"The municipal ownership of street cars, and gas and elec-
tric plants for public distribution of light, heat and power .
The nationalization of telegraphs, telephones, railroads and
mines." And then this one :
"The collective ownership by the people of all means of
production and distribution." 15
Although this resolution was adopted by a referendum vote
of 2244 to 67, when it came up for approval in the Federation
convention in 1894, it was defeated . Referring to this reso-
lution, N. I. Stone, a socialist writer, said that "for the first
time in the history of organized labor of America the question
of Socialism was put squarely before the rank and file of the
American trade unions." 19
The defeat of this resolution angered the socialist delegates .
14 "Samuel Gompers," page 72.
15 "Labor and Farmer Parties in the United States," page 142.
16 "The Volks-Zeitung Library,' Vol . 2, No. 3, April 1, 1900, page 5.

38

FOOLS GOLD
Holding Gompers personally responsible, they proposed to
teach him a lesson. They defeated him for reelection.
Although, a year later, the Old Man was returned to the
presidency by the bare majority of eighteen out of a total vote
of zo64, the socialists continued to carry on their plan either
to capture or destroy the Federation . The system that had
proved so successful in the wrecking of the Knights-com-
mitting some overt unpopular act and causing the blame to
rest upon labor-was planned .
The socialists formed the American Railway Union . Eugene
V. Debs, later titular head of the Socialist party, was made
president. A strike was called in the plant of the Pullman
Palace Car Co ., at Chicago. The Federation, while not directly
involved, was maneuvered into giving its support . Destruction
of property and personal violence followed . Finally trains
hauling mail cars were stopped . Grover Cleveland, then Presi-
dent of the United States, ordered out federal troops . Gov-
ernor Altgeld of Illinois, showing a friendly feeling toward
socialists in general, protested this action. The President wired
the Governor, in substance and effect, that if it became neces-
sary to move the mails, he would conscript every able-bodied
man in America. That broke the strike.
Gompers and the American element in the Federation com-
menced to recognize the fact that they had a ruthless foe
with which to deal, and it soon became the policy, which
policy continued down to the break in its ranks at the 1935
Atlantic City Convention, to placate rather than openly to
oppose the socialist program . In consequence the Federation
has, time and time again, placed itself unreservedly behind
socialist legislative proposals, some of the members knowing
what they were doing but with the majority of the members
not knowing.
Early recognizing the fact that to capture the wage-earners
of this nation was not enough to gain control of the govern-
ment, and so put into operation the complete socialist pro-
gram, attention was early turned to the agricultural section

of the West. The general program was that of agitation to
intensify whatever unrest there might be, and to create addi-
tional ill-feeling. This has been carried on persistently to this
date. The formation of the People's party, early in the '9os
of the last century, enabled the socialists to do a splendid
job of boring from within agricultural organizations.17
Within the socialist movement there was growing a differ-
ence between those who believed in the legislative action
system to gain their ends, and those who believed in the
force and violence system. This resulted in a split in 1901
and the formation of the Socialist party, the name of the
leading socialist political organization to-day . Under the able
leadership of the late Morris Hillquit, agitation and propa-
ganda was extended and intensified to secure "the national-
ization of all means of production and distribution ." This,
it will be recalled, was practically the wording of the Morgan
resolution offered the A. F. of L. which, while being adopted
by a referendum vote, was defeated in the 1894 convention .
The Socialist party, in its 1904 platform, came frankly into
the open and set forth in clear and unmistakable language
the reason it was urging a large number of reformative pro-
posals. That platform stated that the "socialist movement,
therefore, is a world-movement," and one that pledged its
"fidelity to the principles of international socialism ." It divided
the people into two classes-workers and capitalists-stating
that, "there can be no possible compromise or identity of
interests, any more than there can be peace in the midst of
war, or light in the midst of darkness." 18
The platform declared that, "Socialism means that all those
things upon which the people in common depend shall by
the people in common be owned and administered ." 19 In
other words, that no individual shall enjoy the fruit of his
17 For a more complete account of the socialist connection with the
Populist movement see Appendix "C."
18 Proceedings of the National Convention of the Socialist Party, 1904,
page 307.
19 Ibid ., page 308 .

40

FOOLS GOLD
efforts, no person shall be permitted to acquire any form of
property which he can call his own .
Stating that the aim of socialism is to secure possession of,
"all those things upon which the people in common depend"
-that is, things now produced and owned by individuals
such as the products of the farms, the factories, the shops,
means of transportation, etc.-the party expressed in clear
and unmistakable language, just how the ends desired were
to be attained. The platform reads :
"To the end that the workers may seize every possible
advantage that may strengthen them to gain complete control
of the powers of government, and thereby the sooner establish
the cooperative commonwealth" (remember cooperative com-
monwealth is the technical name for the form of government
now operating in Russia), "the Socialist party pledges itself
to watch and work" for certain so-called legislative reforms 2°
Nowhere in the platform, or in the arguments favoring
its adoption as printed in the official proceedings, will one
find a word urging these legislative reforms because they will,
per se, cure the ills alleged to exist . On the contrary, the
socialists definitely state the reason for urging them is because,
if adopted, they "will lessen the economic and political powers
of the capitalist"-that is, those who approve of our form of
government and our economic system-"and increase the like
powers of the worker"-that is, those who accept the socialist
formula. The language follows :
". . . we are using these remedial measures as means to
the one great end of the cooperative commonwealth . Such
measures of relief as we may be able to force from capitalism
are but a preparation of the workers to seize the whole
powers of government, in order that they may thereby lay
hold of the whole system of industry . . . :' 21
The socialists here frankly state that the purpose of reforma-
tive legislation is to establish the cooperative commonwealth,
20 Ibid., page 308.
2 1 Ibid ., page 308.

which cannot be set up until the present form of government
is abandoned. Then certainly the purpose is not, as the people
are led to believe, to cure any economic ills from which they
suffer.
Some may contend that the platform declarations of the so-
cialists in 1904 do not express their position to-day. A com-
parison of this 1904 platform with those of 1928 and 1932
reveals no change in the purpose of the Socialist party . The
main features of the latter platform are given in Chapter II .
Jessie Wallace Hughan, an official spokesman for the So-
cialist party, a contributing editor to the New Appeal, an
official organ of the socialists, writing in 1928, said that, "We
find six lines of legislation that must be pursued simultane-
ously in order to reach the goal." 22 The goal is a pure
socialistic state wherein no person is permitted to acquire
or own property . In summing up some of her arguments in
a chapter captioned, "Methods of Realization," she writes:
"These demands show that the Socialist state is to be
brought about automatically by economic forces, and deliber-
ately by legislation of six general types ." 23
The six types to be inaugurated "simultaneously," accord-
ing to Miss Hughan, which we have paragraphed for a better
and clearer understanding, are :
"First, the political, including proportional representation,
direct election of President and Vice-President, and abolition
of the law-determining power of the Supreme Court ;
"Second, measures to insure civil liberties, including the
repeal of the Espionage Act and the prohibition of the injunc-
tion in labor disputes ;
"Third, the international demands, directed to the abolition
of imperialism and of war;
"Fourth, the financial, consisting of inheritance, income and
other taxes bearing heavily upon superfortunes ;
"Fifth, the industrial, embracing various forms of labor
22 "What Is Socialism," page 203.
2s 1bid., page 114.

42

FOOLS GOLD
legislation, social insurance and pensions, freedom to strike,
the minimum wage, and finally the guarantee of employ-
ment; and
"Sixth, the collectivist, under which comes the gradual
acquiring of the basic industries, beginning with the natural
resources and the larger trusts ." 24
While the right wing of the socialist movement, early in
this century, was perfecting a concrete program of reforma-
tive laws, all of which are reflected in New Deal legislation,
the left wing, or force and violence group, was not idle . Bill
Haywood, with his Western Federation of Miners, had spread
death, destruction and terror through the western metal
mining camps . The success attending his efforts resulted in
the formation, in 1905, of a left wing of the socialist move-
ment called the Industrial Workers of the World, but better
known as the I .W.W. While the activities of this branch of
the movement only incidentally affect the present situation,
one should have a fair understanding of the organization. For
that reason, a brief history is given in Appendix "D."
With the formation of the Socialist party, in the hands
of those who had made some study of American psychology,
definite plans were made to carry on the battle for complete
socialization along all fronts . This was aided by the forma-
tion of many subsidiary organizations with rather deceptive
names, and by an intensive campaign to penetrate the schools
and colleges .
24 Ibid., page 114.

Chapter VI
THE BIRTH OF THE BRAIN TRUST
WHILE the right and left wings of the socialist movement,
the former represented by the Socialist party and the latter
by the I.W.W., were having their little internal troubles, the
brain trusters of the early Twentieth century imported a new
brand of socialism into the United States. It was known as
Fabianism, although that name was not commonly attached
to it in this country .
The Fabian movement was formed in England in 1884
(some claim in 1883) by Frank Podmore, a well-known
spiritualist and prominent with Mrs. Annie Besant in the
Theosophist movement. The Fabians were a group of social-
ists who discarded the garb of the street and dressed in robes
of the "upper crust." They rejected a number of the Marxian
conceptions, principally the class struggle . While the Fabian
movement was composed largely of those who had not
joined the Socialist party (this due to its rigid discipline),
they, did affiliate with the Second International and worked
in complete harmony with the many socialist organizations.
The socialist movement in England for many years had
been directed exclusively by those who saw no flaw in Marx's
writings. Marx introduced the revolutionary idea, that is, the
theory that force, violence and acts of terrorism were neces-
sary to attain the ends sought. This the Fabians rejected,
moving to the right, taking the position that their aims could
be secured through legislative action. This is not only the posi-
tion of those that may be termed Fabians in the United States,
but also of the well-informed element in the whole socialist
movement. The end sought by all-and this applies to the
communists as well-is the overthrow of all governments
43

44

FOOLS GOLD
which recognize the private property right, it being their con-
tention that capitalism, which is based on that right, is re-
sponsible for all the ills to which man is heir .
Prof. Hearnshaw, referring to the Fabians, uses this
language:
"The policy of the Fabians was in accord with their appar-
ently mild and persuasive creed . They studiously avoided the
giving of shocks to society; they went about, not in sheep-
skins and goat-skins, but in silk hats and frock coats, like
the most innocent of shopwalkers ; they enrolled in their
ranks pitiful parsons of all denominations, and got them to
assure the religious world-gravely perturbed by the material-
istic atheism of Marx-that socialism was really nothing more
than applied Christianity ; they lived in suburban villas;
waxed eloquent in drawing-rooms ; made money, invested it,
and flourished on the dividends like any ordinary capitalist ;
drew rents and royalties, and sought differential increases of
salaries, just as though they had been normal parasites of
the toiling proletaria . . . .
"Their method of attack upon capitalism from their first
day to the present has been thoroughly characteristic : it has
been the method of sapping rather than assault; of craft
rather than force; of subtlety rather than violence . 'Permea-
tion' has been their watchword . Power rather than property
has been their immediate quest ; but power which will enable
them in the end-by peaceful and constitutional means, in-
finitely more effective and less destructive than communist
violence-to possess themselves of property . They have
wormed their way, often in disguise, into political clubs, trade-
union executives, cooperators' directorates, educational com-
mittees, religious conferences, boards of guardians, municipal
councils, and other public bodies, and have made it their
business to guide and drive them in a socialistic direction.
Above all, they have tried to bemuse the public mind into
the belief that `socialism' and `collectivism' are synonymous


45
terms; and that all they are aiming at is a harmless and
beneficent extension of state and municipal enterprise." 1
Tract No. 5, issued by the Fabians some years ago, details
the plans and purposes . Prof. Hearnshaw has analyzed this
document and in a few terse sentences exposes the scheme .
He writes :
"Step by step, land, mines, railways, ships, banks, shops-
everything-will be nationalised, municipalised, socialised.
Private enterprise will be slowly but completely squeezed out
of existence; competition will be imperceptibly but entirely
eliminated. And the funds to achieve these ends will not be
seized by lawless force ; they will be quietly but remorselessly
extracted from private enterprise and competitive industry
themselves by a graduated system of predatory taxation.
Nothing will be confiscated ; everything will be purchased
and paid for. The members of the possessing classes will, by
some ingenious device or other, compensate one another, until
(again gradually) their funds run out, when they will, to
their great advantage, be compelled to resort to work, even
if it be only to `earn a precarious livelihood by taking in
one another's washing.' Meantime the proletariat will rejoice.
They will all be servants of the beneficent state ; their wages
will go up, for they will fix them themselves through their
elected representatives ; their hours of labour will go down,
for they will no longer have to maintain capitalists and land-
lords in luxury ; they will begin to draw large old-age
pensions whilst they still have youth and energy to enjoy
them; education, medical attendance, amusements, recreations,
transport-all will be free and unrestricted. In the end, every
one will be a blessed pauper, paying away all his earnings
in rates and taxes, and in return being luxuriously maintained
(so long as he does not display any recrudescence of indi-
vidualism) on outdoor relief ." 2
Tract No. 127 contains this significant statement:
1 "A Survey of Socialism," Hearnshaw, pages 298 -9.
2 lbid., pages 305-6.

46

FOOLS GOLD
"To the socialist, taxation is the chief means by which he
may recover from the propertied classes some portion of the
plunder which their economic strength and social position
have enabled them to extract from the workers . . . . To the
socialist, the best of governments is that which spends the
Most." 3
We have given the foregoing citations rather fully for a
reason. We ask you now to re-read them, changing the words
"Fabian" and "Fabianism" where they appear to "New Deal"
or "New Dealism." Professor Hearnshaw wrote what we have
quoted in 1928, long before the program of the brain trust
was sprung on the people of the United States and yet no
man to-day can compress in so few words as complete an
analysis of the methods, aims and purposes of the forces
supporting the present Administration at Washington .
Fabianism was introduced as an organized movement in
the United States in 1905 when a group of intellectuals
formed the Intercollegiate Socialist Society. Among those
establishing this organization were Harry W . Laidler, Clar-
ence Darrow, Jack London, the late Morris Hillquit and a
number of others of the same mental trend. The purpose
of the organization was stated in this language : "For the
purpose of promoting an intelligent interest in socialism
among college men and women, graduates and under-
graduates. 4
While not claiming any direct connection with the Fabians
of England, the Intercollegiate Socialist Society adopted, prac-
tically in toto, Fabian tactics, aims and purposes . For instance,
the society's leaders took the Fabian position that by elevating
the theory and causing it to be discussed by the high-brows,
they could educate the rising generation to accept its realiza-
tion as their one and only salvation. Thus they believed they
could, within a few decades, have socialist thought sufficiently
intrenched in the minds of a powerful and influential
$ Cited, Ibid., page 306 .
4 "Socialism in Thought and Action," Laidler, page 503 .


47
minority, to gain political control and thereby establish the
"new social order" cited by the society as its true purpose .
While it may be giving this organization more credit than
is its due, by checking its activities and the spread of its
influence from the date of its organization to the present
year, one is forced to the conclusion that it, at least, wet-
nursed the present brain trust. In 1921, the name was changed
to the League for Industrial Democracy, a rather deceptive
title. Its purpose was then stated in this language:
"To promote among college men and women an intelligent
understanding of the labor movement and of the movement
toward a new social order based on production for use and
not for profit ." S
Under that name the socialists have gained considerable
standing. They have been able to secure coast-to-coast hook-
ups over one of the great broadcasting systems . Dr. Laidler,
who is a suave socialist speaker, has appeared on these pro-
grams a number of times.
While some of the socialists now prominently affiliated with
the League for Industrial Democracy decry parts of the New
Deal, due largely to personal pique because their program has
been taken over by what is called the Democratic party,
socialists generally are for all the reform measures so far
presented. The reason is apparent . Dr. Laidler says :
"A majority of socialists . . . believe that, on the whole,
social reforms bring the goal of socialism nearer. For these
measures have a tendency to undermine the power of the
capitalist; to whet society's appetite for further and more
effective control over their industrial life ; to give to the
public servants valuable experience in the control of industrial
functions, and to strengthen the working class physically and
intellectually, so that they may become ever more powerful
in their fight for emancipation ."
At the opening of the Twentieth century there probably
s "Social Progress," page 284 .
6 "Socialism in Thought and Action," page zoo.

48 FOOLS GOLD
was not even one college professor in the United States openly
and frankly teaching the Marxian theory to his students .
Following the formation of the Intercollegiate Socialist Society
the tendency to present socialism as a legitimate subject of
inquiry became manifest, and within the past decade or more,
many of the leading educational institutions have been more
or less dominated by professors who denounce the capitalist
system and demand the installation of pure socialism in the
United States.
In 1925 the New York Daily Commercial ran a series of
articles by Ralph E. Duncan entitled "Are Our Colleges
Teaching Subversive Philosophy?" They showed extensive
research and certainly were informative. Had some attention
been paid to what Mr. Duncan said at that time, we might
now be spared the menace of a brain trust . The first three
paragraphs introducing the series, read :
"Revolutionary radicalism, once a thing of the street corner,
is firmly established to-day on the campus of many an
American college. The trustees and administrative officers
of some of the oldest and largest universities in the country
are confronted with a situation unlike anything in the history
of education in America.
"The slogans of the `class struggle' and the catch-phrases
of Socialism are upon the lips of a growing host of young
men and women in the universities. Vicious, immoral and
degrading beliefs are fostered among the `advanced thinkers'
of both the student body and the faculty by organized groups
outside the colleges who employ all the arts of propaganda to
disseminate false and subversive doctrine on the campus and
in the lecture hall.
"Open defiance of the trustees and heads of several institu-
tions by organized groups of the faculty and student body
during the last three or four semesters has brought matters
to an issue in a score of colleges ."
The strategy of the organized socialist agencies in the edu-
cational institutions was the same as had been employed

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